bank interest first oak 6% simple eagle view 8.5% simple river point 2% compounded annually west united 5%…

bank interest first oak 6% simple eagle view 8.5% simple river point 2% compounded annually west united 5% compounded annually 5 giovanna deposited $1600 into two different savings accounts. she deposited half of the money at first oak and the other half at west united. how much interest will she have earned from both accounts at the end of 5 years? (round to the nearest cent) 1 1269.5 2 77.27 3 23,547.50 4 87.84 5

bank interest first oak 6% simple eagle view 8.5% simple river point 2% compounded annually west united 5% compounded annually 5 giovanna deposited $1600 into two different savings accounts. she deposited half of the money at first oak and the other half at west united. how much interest will she have earned from both accounts at the end of 5 years? (round to the nearest cent) 1 1269.5 2 77.27 3 23,547.50 4 87.84 5

Answer

Explanation:

Step1: Calculate amount in each bank

The amount deposited in First Oak and West United is $\frac{1600}{2}=800$.

Step2: Calculate simple - interest from First Oak

The simple - interest formula is $I = Prt$, where $P$ is the principal amount, $r$ is the annual interest rate, and $t$ is the time in years. For First Oak, $P = 800$, $r=0.06$, and $t = 5$. So $I_1=800\times0.06\times5=240$.

Step3: Calculate compound - interest from West United

The compound - interest formula is $A=P(1 + r)^t$, where $A$ is the amount of money accumulated after $n$ years, including interest, $P$ is the principal amount, $r$ is the annual interest rate, and $t$ is the number of years. For West United, $P = 800$, $r = 0.05$, and $t=5$. So $A=800\times(1 + 0.05)^5=800\times1.05^5=800\times1.27628=1021.024$. The compound interest $I_2=A - P=1021.024−800 = 221.024$.

Step4: Calculate total interest

The total interest $I=I_1 + I_2=240+221.024 = 461.024\approx461.02$.

Answer:

$461.02$